Press Release
March 27, 2012

Drilon seeks conversion of gov't hospitals into GOCCs

Saying his proposed measure will help improve the health services delivery throughout the country, Senator Franklin M. Drilon filed a bill seeking conversion of national government hospitals into government-owned and controlled corporations.

Senate Bill 3130 titled "National Government Hospital Corporate Restructuring Act" aligns the present organizational structure of the 26 medical institutions with that of the government corporations.

The restructuring of national government hospitals to corporate entities will capacitate them to engage in revenue-generating activities, and proceeds of which can be used to subsidize medical care of indigent patients, said Drilon.

"The provision of basic health services remains one of the most essential functions of the government," said Drilon.

"Fiscal autonomy of government hospitals will lead to more efficient delivery of health services," added Drilon, noting that the measure will likewise save funds of government which it could use to fund other health efforts.

Under the bill, hospital administrators will be given free hands to manage its resources; acquire, lease or sell assets; borrow funds from local or foreign creditors; and accept donations.

It will also allow them to determine its organizational structure and staffing pattern consistent with the pertinent provisions of GOCC Governance Act of 2011, a law principally authored by Drilon reforming the operations of state-owned enterprises and curbing the abuses particularly on excessive bonuses and allowances.

Drilon believes that his bill, once passed, will provide all citizens especially the poor and marginalized with an acceptable, modern, affordable and efficient national hospital care delivery system.

At present, these 26 state hospitals are being run under the administrative supervision of the Department of Health. These include Cagayan Valley Medical Center, Veterans Regional Hospital, Baguio General Hospital and Medical Center, Region I Medical Center, and Ilocos Training and Regional Medical Center in Northern Luzon; Dr. Paulino J. Garcia Memorial Research and Medical Center and Jose B. Lingad Memorial Medical Center in Central Luzon; and Batangas Regional Hospital in Southern Luzon. Also included are Bicol Medical Center and Bicol Research Training and Teaching Hospital in Bicol Region and Quirino Memorial Medical Center, Jose R. Reyes Memorial Medical Center, Rizal Medical Center, Amang Rodriguez Medical Center, San Lazaro Hospital, Vicente Sotto Memorial Medical Center in National Capital Region.

In Visayas Region, the hospitals include Corazon Locsin Montelibano Memorial Regional Hospital, Western Visayas Medical Center in Region VI and Eastern Visayas Regional Medical Center in Region VIII.

In Mindanao, the hospitals to be converted into GOCCs include Northern Mindanao Medical Center in Cagayan de Oro, Mayor Hilarion A. Ramiro, Sr. Regional Training and Teaching Hospital in Region X; Southern Philippines Medical Center and Davao Regional Hospital in Region XI; Zamboanga City Medical Center in Region IX; Cotabato Regional and Medical Center in Region XII; and CARAGA Regional Hospital in Region XIII.

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